EMC’s debt to Standard Bank soars to USD 130 million

ZGM DAILY

2019-03-06 10:00 GMT+8

CHIEF OF CABINET SECRETARIAT ADDRESSES EMC SHAREHOLDER ISSUE

Chief Cabinet Secretariat Oyun-Erdene Luvsannamsrai and MPs including Batzandan Jalbasuren and Bold Luvsanvandan held a press conference at the state palace, yesterday, on the reportedly new facts regarding ownership and purchase of Erdenet Mining Corp.’s (EMC) 49 percent stake. 49 percent of the EMC was brought to Mongolian ownership after Mongolian Copper Corporation (MCC) purchased it from Russia’s Rosneft in 2016. The purchase has since been under considerable political battle since.

The facts disclosed today reportedly revealed that the financial scheme the stake was bought, but failed to provide any indication that the purchase was illegal. According to the officials, the case is still under investigation, for the third year.

After being inquired about the fate of Mongolian Government owned 51 percent stake of the same factory, officials led by Mr. Oyun-Erdene said the case is under review. The 51 percent stake owned by the Government of Mongolia has been collateralized at the Standard Bank of South Africa in 2009. Failure to pay the debt led to an arbitral decision. As of today, total amount of fine Mongolian Government, namely the EMC owes the Standard Bank has totalled USD 130 million.

Regarding false accusations made by the Chief of Cabinet Secretariat, Purevtuvshin Tsooj, CEO of MCC turned to the court late last week.

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